DATE: November 25, 2014
TO: Board of Mayor and Aldermen
FROM: Eric Stuckey, City Administrator
SUBJECT:
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Overview of the "Vested Property Rights Act of 2014"
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Purpose
The purpose of this memo is to provide information to the Franklin Board of Mayor and Aldermen (BOMA) concerning the recently enacted development vesting legislation that becomes effective for projects approved after January 1, 2015.
Background
Many states across the country have enacted vesting legislation for development. A vested right allows development of a proposed use of land to proceed even when subsequent changes in zoning and other development regulations render the proposed use or design impermissible. A vested right protects a developer/property owner from a subsequent zoning change by freezing the existing zoning and other development regulations applicable to an approved development, providing a right to proceed that cannot be taken away without due process. In Tennessee, the right to develop vests at various points of the development approval and construction process. When communities fail to provide reasonable certainty in the development approval and construction process the potential of increasing development costs after on-site construction has commenced escalating the cost of housing and other types of development. This uncertainty has the potential of discouraging future investment and a commitment to comprehensive planning.
Financial Impact
The financial Impact has not been evaluated at this time
Recommendation
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No recommendation. Presentation only.